07/07/2008

India's forex reserves at US$311.7 billion

The country's foreign exchange (forex) rerserve fell $691 million to $311 billion for the week ended June 27, mainly due to a dip in the foreign currency assets.

Foreign institutional investors (FIIs) have been pulling out a part of their investment from the volatile domestic stock markets, affecting the level of foreign exchange reserves, said analysts.

Apart from the FII action, demand for foreign exchange from oil companies and importers is also infuencing reserve levels. The Reserve Bank of India was seen selling dollars to keep the rupee below Rs 43 to a dollar.

This week, the rupee depreciated further and breached the 43 mark against the US currency and closed on Friday at 43.15.

Foreign currency assets declined by $694 million to $302.05 billion, according to RBI's Weekly Statistical Supplement.

(Source: Business Standard)